How long will credit report take to update after paying off loan?

AlpineF30

Hi there,

I have a good credit report which is in the V.Good sector using the MSE Credit Club.

I have no debt on credit cards and do not have a mortgage.

I had a car on PCP with a settlement figure of £34k and have been happily paying the repayments every month and enjoying the car.

As the car was on PCP my affordability score took a bit of a knock as it was a lot of debt and it matched my salary.

Anyway I have now got married and sold the car today which cleared the £34k outstanding balance.

We purchased a house at auction which requires around £20k put into it to get it up to a modern standard so I wish to take out a personal loan for this.

There was £5k equity in the car which I have in a savings account and would like to take a 15k loan to help with the improvements.

I was wondering how long will it take for my credit file to show the 34k debt as cleared which should then help my eligibility chances when applying for a loan as I currently have no debt to my name and zero credit searches in the past 18 months. However the debt of the car is still showing on my record and is impacting my eligibility.

Cheers

[Deleted User]

You should see it within the next month or so.

[Deleted User]

However ignore the score/rating as it’s entirely made up and will likely drop when the loan comes off anyway

AlpineF30

Thanks all for the replies,

Realistically how long should I wait before applying for a loan once the car finance has been paid off?

[Deleted User]

Once it shows as settled, you could try one or two applications.

If declined, leave it a couple of months.

jimbo26

I paid off a loan end of May, only just showing as settled in the last week. About six weeks for me. I guess it depends when they report to the CRA's and if you settle just before they report or after.